Apple to source more iPhones from India to beat Trump’s tariffs: Report

• Apple is exploring manufacturing in India as a temporary measure to bypass U.S. tariffs on Chinese goods, according to The Wall Street Journal. It’s currently seeking an exemption for its China-made products.
• To mitigate tariff impacts, Apple has flown five planes of iPhones and other products from China to India and then to the U.S. and is stockpiling gadgets to maintain current pricing.
• Apple aims to produce 25 million iPhones in India this year, potentially meeting 50% of U.S. demand, as increased tariffs could significantly raise iPhone costs.

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Apple is reportedly looking to India to bypass President Donald Trump’s new tariffs. According to a report from The Wall Street Journal on Monday, April 7, the adjustments are a temporary solution while the company tries to get an exemption on its products manufactured in China.

People familiar with the matter said Apple thinks this move could work since Chief Executive Tim Cook was able to negotiate a similar deal during the first Trump administration.

What’s Apple doing to get ahead?

The tech giant is also reportedly not taking chances. During the last week of March, before the tariffs were announced, the company flew five planes filled with iPhones and other products out of China and India and into the United States.

The Times of India reported that the company is looking to stockpile gadgets to keep current pricing.

What’s the latest on tariffs?

On April 2, Trump increased tariffs on Chinese goods to at least 54% while imposing 26% on Indian goods. He has since threatened to increase China’s tariffs if the country doesn’t eliminate its retaliatory tariffs.

An analyst with Bank of America told the Journal that Apple plans to make about 25 million iPhones in India in 2025, with around 10 million going to the local Indian market.

However, if Apple redirected all India-made iPhones to the U.S., it could meet about 50% of American demand for the device in 2025.

According to TechInsights, the tariff on Chinese goods could add about $300 to Apple’s current $550 hardware cost for an iPhone 16 Pro that currently sells for $1,100.

Business of Apps data shows the iPhone makes up around 50% of Apple’s revenue.